15 January 2024ISF proudly announces the signing of Virtual Power Purchase Agreement (VPPA) with Cenergi, solidifying our commitment to long-term clean energy initiatives
We are proud to announce a momentous achievement at Intercontinental Specialty Fats Sdn. Bhd (ISF). On January 11, 2024, ISF officially entered into a VPPA with Cenergi Solar Kuala Ketil Sdn. Bhd (Cenergi). This strategic collaboration underscores our firm belief in the transformative power of partnership, marking a significant milestone in our unwavering commitment to sustainability and renewable energy.
ISF as the first Japanese company to sign a long-term VPPA with Cenergi in Malaysia
We take pride in being the first Japanese corporate consumer to enter into this agreement with Cenergi, a leading solar power producer, as part of the Corporate Green Power Programme (CGPP). This exemplifies our proactive approach to embracing clean energy solutions and positions ISF as a pioneer in corporate sustainability practices within the country.
As part of the collaboration, Cenergi will construct, own, and operate a large-scale solar photovoltaic plant, supplying clean solar electrical energy virtually to ISF Malaysia’s production plant. The Cenergi Solar Plant located in Kuala Ketil, Mukim Tawar, Baling Kedah, is expected to be fully operational by December 2025.
CEO Spotlight: Takashi Ishigami on the Significance of VPPA
ISF CEO, Takashi Ishigami, emphasized during the signing ceremony, “Through this VPPA, ISF will receive Renewable Energy Credits (RECs) from this solar farm project. These RECs not only allow us to claim greenhouse gas reductions but also reinforce our commitment to increasing our renewable energy portfolio. This step is vital in our mission to transition towards a more sustainable and environmentally responsible future.”
Sustainability in Action
The VPPA not only secures a stable supply of clean energy but also highlights ISF's proactive approach to innovative solutions in the clean energy sector. This initiative is a vital part of ISF's broader sustainability strategy, targeting a 34% reduction in GHG emissions (Scope 1 & Scope 2) by 2030 compared to our 2019 baseline.
Corporate Green Power Programme (CGPP)
In November 2022, Malaysia launched the Corporate Green Power Programme (CGPP) – a VPPA programme that allows eligible corporate consumers to enter a VPPA with a solar power producer for the virtual purchase of RE, including the value of any green credits available from the generation of such RE.
Virtual Power Purchase Program (VPPA)
VPPA is a long-term contract signed between a renewable energy developer and an interested buyer. This approach covers future trading risks related to price fluctuations in the energy market (hedging) while simultaneously providing certainty that the energy allocated to the buyer comes from renewable sources.